According to Malaysian Retailer Chain Association (MRCA) president Datuk Nelson Kwok Teng Tong, introduction of GST, which has been implemented in 160 countries around the world, will replace our current consumption tax which currently includes sales tax and services tax.
“It has been set in the upcoming GST Bill that businesses with a taxable turnover of RM500,000 would be required to register with the Royal Malaysian Customs Department for GST,” added Kwok.
While the implementation of GST is set to come a year from now, many businesses are still not prepared for the full implementation.
Kwok urged all retain-chain businesses to make haste in the preparation of GST as proper processing systems need to be in place so that there will be lower chance of errors in tax declarations, which will lead to reduction in compliance costs due to penalties incurred.
“The implementation of the proper processing systems goes beyond having just a simplistic understanding of GST, especially for medium sized to big retailers,” said Goldsoft Sdn Bhd executive director Alex Lim.
According to Lim, much work will need to be done as some retail businesses have customised retail management software, and customising these systems to be GST-compliant may not be straightforward and will likely take months to complete depending on the size of the businesses.
While the users need to be trained with the new software, Lim also stressed the need for trial period to run the new system months before the deadline to avoid problems.